A plenary session chaired by Speaker Anita Among (C) on April 24, 2026. Courtesy PhotoParliament has approved a record 84.391 trillion Shillings national budget for the 2026/27 financial year, setting the tone for Uganda’s fiscal direction in the coming years.The budget, passed during a plenary session chaired by Speaker Anita Among on April 24, 2026, is the first fiscal blue print under the ruling National Resistance Movement (NRM)’s 2026-2031 manifesto and the second year of implementing the Fourth National Development Plan (NDP IV).Key allocations reflect government’s continued emphasis on security, infrastructure, and innovation.Defence takes the largest share at 2.976 trillion Shillings, followed by Works and Transport with 1.024 trillion Shillings. The health sector sees 861.5 billion Shillings allocated to Uganda Medical Stores, while the Uganda Police Force receives 847.8 billion Shillings.Other notable votes include 817.8 billion Shillings for the Uganda Revenue Authority, 517.4 billion Shillings for Science, Technology and Innovation, 484 billion Shillings for the Uganda Prisons Service, 370.7 billion Shillings for Makerere University, and 330.8 billion Shillings for the Kampala Capital City Authority.Government presents the budget as a launchpad toward achieving a 500 billion US dollar economy by 2040, with macroeconomic indicators pointing to strong performance. According to the Budget Committee report presented by Deputy Chairperson Remigio Achia, the economy grew by 8.5 percent in the second quarter of FY2025/26, up from 5.4 percent in the same period the previous year.Growth was broad-based across agriculture, industry, and services, while inflation remained contained at an average of 3.5 percent, below the central bank’s target of 5 percent. The government attributes this performance to strong domestic demand, sustained public investment, and macroeconomic stability. The committee report notes that the current trajectory aligns with NDP IV projections, which target growth of up to 10.4 percent by 2028/29.However, the Leader of the Opposition in Parliament, Joel Ssenyonyi, has cautioned against equating growth with inclusive development. He argues that the real measure of progress lies in job creation, productivity, and poverty reduction. Without disciplined spending and efficient investment, he warns, economic expansion could still leave inequality largely unchanged.The most significant pressure point in the budget is the rising cost of debt. Approximately 33.6 trillion Shillings, about 40 percent of total expenditure, has been earmarked for debt servicing, covering both domestic and external obligations. Finance State Minister Henry Musasizi outlined a financing plan anchored on 44.8 trillion Shillings in domestic revenue, supplemented by borrowing of 11.79 trillion Shillings domestically and 11.27 trillion Shillings externally.Critics argue that such a heavy debt burden risks squeezing funding for essential services. When combined with recurrent expenditures such as wages, allowances, and classified spending, nearly 70 percent of the budget is effectively pre-committed, leaving limited room for new development priorities.Concerns over transparency and accountability have also emerged. A minority report led by Kira Municipality MP Ibrahim Ssemujju Nganda flagged last-minute adjustments, including a 97 billion Shillings increase and 862 billion Shillings in reallocations introduced through a corrigendum shortly before approval. The report notes that these changes were presented without supporting documents such as procurement plans and performance indicators, contrary to the Public Finance Management Act (PFMA).The minority report further highlights a number of contentious expenditures. These include 260.4 billion Shillings for DR Congo reparations, marking the final instalment of a 2 trillion Shillings obligation ordered by the International Court of Justice over Uganda’s 1997-1998 intervention.Additional scrutiny is directed at 305.9 billion Shillings allocated to the Lubowa Hospital project under developer Enrica Pinetti, bringing total disbursements close to 916 billion Shillings, with further funding requests pending.State House spending also remains a point of contention, with 479.9 billion Shillings budgeted for FY2026/27. Lawmakers noted that the previous allocation rose significantly through supplementary requests, raising concerns about budget credibility and adherence to reporting requirements.Despite the criticism, Musasizi defended the budget’s strategic direction, emphasizing continued investment in Agro-Industrialization, Tourism, Mineral-Based Industrialization, and Science, Technology, and Innovation, the core pillars of the government’s ATMS agenda. He said these priorities would be supported by enablers such as infrastructure, energy, security, and targeted wealth creation funds.More than half of the budget; 52.7 percent, is expected to be financed through domestic revenue, largely from taxation. This places growing pressure on households and businesses, particularly in an economy where informality remains widespread and incomes uneven.-URNThe post Winners & Losers Revealed As Parliament Approves UGX84 Trillion Budget appeared first on Business Focus.